Force10 Networks Reports Continued Momentum with 25% Sequential Growth

Its Q4 Results Reflected Further Penetration into Next Generation Data Centers, Accelerated 10 Gigabit Ethernet Shipments and Broadened Solution Offerings

 

Force10 Networks today announced that its fourth quarter bookings increased 25% from the previous quarter for the period ending September 30, 2009.

The continued momentum and growth reflects the culmination of several key developments during the company’s most recent quarter highlighted by:

  • Continuing market acceptance of the Force10 high-performance switch/router products, including the ExaScale E-Series virtualized core switch/router, by next-generation data center, HPCC (high performance cluster computing) and enterprise customers
  • Accelerating growth in 10 Gigabit Ethernet (10 GbE) shipments associated with Force10’s core switch/router platforms
  • Realizing expected market synergies associated with the Force10 Networks–Turin Networks merger from last March, such as the delivery of a new solution for the “Middle Mile” market as rural carriers migrate toward 10 GbE-based networks

“These positive developments during our last quarter have enabled Force10 to extend its growth in key markets and broaden our solution portfolio for service providers,” says Henry Wasik, president and CEO of Force10 Networks. “Moving forward, Force10 will continue to be well positioned from a technology and breadth-of-product perspective to further grab market share from the highest-performing data center environments to the triple play networks of today’s rural carriers.”

ExaScale Switch/Router Makes Impact in Demanding Data Center Environments

The Force10 ExaScale E-Series virtualized core switch/router, which was introduced in March 2009, made significant contributions to the company’s continued momentum. Optimized for deployments in high-performance data centers, computing clusters and service provider carrier Ethernet core markets, the ExaScale product portfolio delivers unmatched performance and flexibility, reduced power consumption and ongoing investment protection. In the short timeframe since its introduction, the industry-leading 10 GbE and 10/100/1000Base-T density of ExaScale with line-rate and non-blocking scalability, caught the attention of some high-profile customers. New wins in data centers and carrier points of presence (POPs) supported ExaScale’s sales momentum throughout the year, including the Japan Internet Exchange Co. Ltd. and the U.S. Dept. of Energy’s Brookhaven Labs, both of which Force10 helped scale their core network to 10 GbE speeds.

Accelerated Growth in 10 GbE Shipments

Over the past two quarters, Force10 also experienced significant growth in 10 GbE shipments. Last quarter, leading industry research firm Dell'Oro Group forecasted that the main drivers for Ethernet switch market growth beyond 2009 will be the increased adoption of 10 GbE and data center build outs. In line with those predictions, 10 GbE shipments associated with Force10’s modular switch/router platforms, the E-Series and C-Series, experienced more than 200% growth from Q2 to Q4.

Expanded “Middle Mile” Solution Illustrates Synergies from Merger

During the fourth quarter, the Force10 C-Series and E-Series switch/routers received “Buy American” status by the U.S. Department of Agriculture’s Rural Utilities Service (RUS), which qualifies the products for purchase by rural carriers utilizing grants and low-cost loans obtained from the RUS. The RUS and the National Telecommunications Industry Association (NTIA) are responsible for dispersing the $7.2 billion in broadband stimulus funding under the 2009 American Recovery and Reinvestment Act. The need for 10 GbE in the carrier “middle mile” network, which enables the delivery of high-speed broadband services to rural and underserved communities, represents a significant new market for the Force10 Ethernet switch/router solutions.